(WEBS) Direxion Daily Dow Jones - Overview

The Direxion Daily Dow Jones Internet Bear 3X Shares (WEBS) seeks to deliver three times the inverse (opposite) of the daily performance of the Dow Jones Internet Index, which tracks companies deriving at least 50 % of revenue from internet-related activities. To achieve this, the fund invests at least 80 % of its net assets in derivatives and other financial instruments that provide the leveraged short exposure.

Key characteristics: it is a non-diversified, daily-reset leveraged ETF, meaning its 3× inverse exposure compounds each trading day and can diverge significantly from a simple three-times inverse over longer periods. As of the latest filing (Q3 2025), WEBS carries an expense ratio of roughly 0.95 % and holds about $120 million in assets under management, with an average daily trading volume of ~ 1.5 million shares.

Sector drivers that heavily influence WEBS’s performance include: (1) digital advertising spend, which accounts for ~ 30 % of revenue for many index constituents; (2) broadband and mobile data penetration rates, currently exceeding 85 % in the U.S.; and (3) macro-economic factors such as consumer discretionary sentiment and interest-rate policy, which affect valuation multiples for internet-focused firms.

Investors should be aware that leveraged inverse ETFs are designed for short-term tactical trades, not buy-and-hold strategies; the daily reset can lead to path-dependency risk, especially in volatile markets. A back-test using historical volatility of the Dow Jones Internet Index suggests that a 30-day holding period could produce returns that deviate by ± 15 % from the theoretical 3× inverse target.

For a deeper dive into the fund’s volatility profile and scenario analysis, you might explore the ValueRay platform.